From 5034be037a4cee061a6a160d94894f0004140b5c Mon Sep 17 00:00:00 2001 From: Rufus Pollock Date: Tue, 21 Jun 2022 11:12:35 +0200 Subject: [PATCH] [notes/3][m]: fullish notes on emmett-slater-2022. --- notes/bonding-curves.md | 19 ++++++++++++++++++- notes/continuous-organizations.md | 9 +++++++++ ...mett-slater-2022-bonding-curves-commons.md | 14 ++++++++++++-- 3 files changed, 39 insertions(+), 3 deletions(-) create mode 100644 notes/continuous-organizations.md diff --git a/notes/bonding-curves.md b/notes/bonding-curves.md index eb79b10..2906736 100644 --- a/notes/bonding-curves.md +++ b/notes/bonding-curves.md @@ -18,6 +18,23 @@ He continues > > For example, if you are purchasing tokens of a [continuous organization](https://hackernoon.com/introducing-continuous-organizations-22ad9d1f63b7) (sort of like buying equity in a traditional corporation), and the token entitles you to a portion of future cash flows of that organization, you’ll be able to estimate the token’s present value. If you are able to observe when the bonded token is overpriced, it will be harder for attackers to execute a pump and dump. If, on the other hand, we create a bonding curve and attach it to a meme without any promise of future cash flows, we’ll have a much harder time reasoning about the fair price of the bonded token. In this case the bonding curve is easier to manipulate and is much more like a gambling game. + +## Sande, A. V. de. (2018, August 28). Sponsored Burning for TCR. _Medium_. + +https://avsa.medium.com/sponsored-burning-for-tcr-c0ab08eef9d4 + +One note: the whole thesis of this article looks like an elaborate presentation of what is simply selling advertising on a curate list for money -- but dressing it up with tokens! + +There's an analogy here for me with knot theory and working out whether something is the null knot. If you dress up a basic economic idea in enough jargon and add enough convolutions it can seem novel. But underneath it is still the same basic economic idea. There's no innovation there. + +### Normal bonding curves are zero-sum and look like a [pyramid-scheme](../concepts/pyramid-scheme.md) or [pump-and-dump](../concepts/pump-and-dump.md) + +> The assumption of the bonding curve is that the total supply of tokens always equate the funds held, therefore if everyone sold all tokens, the total amount of money going in would be equal to the amount of money going out. The distribution of money for each participant would be different, depending on when they got in and out, **which makes the whole system a zero-sum game that rewards those who got in early and got out at the top,** making it very similar to a pyramid, or a “pump and dump” scheme in which all profit comes at expense of new members. + +Note the: + +> making it very similar to a pyramid scheme + # TODO -* [ ] Augmented bonded curves \ No newline at end of file +* [ ] Augmented bonded curves (I think these are just bonding curves with some version of an ICO aka "hatch" phase added to the front) \ No newline at end of file diff --git a/notes/continuous-organizations.md b/notes/continuous-organizations.md new file mode 100644 index 0000000..fc677ea --- /dev/null +++ b/notes/continuous-organizations.md @@ -0,0 +1,9 @@ +# Continuous Organizations + +https://github.com/c-org/whitepaper + +### Current securities laws impose constraints on selling and distributing securities and we want to remove those + +> Unfortunately, today's organizations have no simple and efficient way to strongly align the interests of their workforce of users with the financial success of their organization. This is mostly due to today's securities' laws that impose constraints and frictions when it comes to selling and distributing securities, especially to non-accredited investors. +> +> To solve this issue, we propose a new paradigm: the _Continuous Organization_ (CO), a new type of organization designed to align the stakeholders' interests significantly better than in traditional organizations. A _Continuous Organization_ is any kind of organization that set up a _Continuous Securities Offering_ (CSO) by funneling part or all of its realized revenues to a _Decentralized Autonomous Trust_ (_DAT_). A _DAT_ is a smart-contract with the ability to automatically issues, buy back and cancel fully digital securities called _FAIR Securities_ (_FAIRs_) to meet market demand using predefined rules. \ No newline at end of file diff --git a/notes/emmett-slater-2022-bonding-curves-commons.md b/notes/emmett-slater-2022-bonding-curves-commons.md index e76cbd6..ad1e837 100644 --- a/notes/emmett-slater-2022-bonding-curves-commons.md +++ b/notes/emmett-slater-2022-bonding-curves-commons.md @@ -1,7 +1,17 @@ # From Bonding Curves to Commons Market Makers -* PAMMS = primary automated market makers aka [bonding-curves](bonding-curves.md) aka issuing your own shares on a predetermined algorithmic basis +Emmett, J., & Slater, M. (2022, June 9). From Bonding Curves to Commons Market Makers. _Medium_. https://medium.com/@cryptocommonsassociation/from-bonding-curves-to-commons-market-makers-5c735604bd4c +# Summary + +* [AMM (Automated Market Maker)](../concepts/amm.md): an algorithm that exchange one [cryptoasset (token)](../concepts/cryptoasset.md) for another e.g. Ether for Bitcoin. +* Emmet distinguishes two types of AMM: + * Secondary Automated Market Makers (SAMMs): these are the classic kind running the distributed exchanges (Uniswap, Curve) etc. Secondary because they don't issue new tokens but simply trade existing ones. + * Primary Automated Market Makers (PAMMs): (aka [bonding-curves](bonding-curves.md)) are able to issue new tokens (as well as to buy them back). Hence the name primary because they are a primary source of tokens. +* Matt Slats = Matthew Slater https://matslats.net + * Clearly pretty sceptical of the whole bonding curve and commons stuff: "I still have many concerns that new and repurposed language is being used to cover up for poorly designed financial mechanics and merely give the impression of innovation without real value underneath.** Given the growth of the crypto field in the last decade, it must be very tempting for people to overestimate their cleverness, and to mistake financial engineering for wealth creation." + +# Excerpts ### PAMMs only work if people buy so why would people buy in "commons" projects? (Ans: Not really clear) @@ -60,7 +70,7 @@ How? How does it enable this in ways that say market democracy does not? Why can He continues: -> t’s also doing that alongside new granularity and subsidiarity in decision making, and I think that’s fundamentally important. In a future world your regular choice of investments could include a that funded emergent climate solutions, or that fed the hungry, or even that supported your community. If you are bullish on Tesla stocks, wait ’til you see the latent demand for investments that directly support emergent regenerative practices on a global scale! (Of course, we are a ways off from that yet.) +> It’s also doing that alongside new granularity and subsidiarity in decision making, and I think that’s fundamentally important. In a future world your regular choice of investments could include a that funded emergent climate solutions, or that fed the hungry, or even that supported your community. If you are bullish on Tesla stocks, wait ’til you see the latent demand for investments that directly support emergent regenerative practices on a global scale! (Of course, we are a ways off from that yet.) But again we have had participatory voting etc for a long time. There are fundamental reasons of scale why we don't do participatory budgeting at scale or why liquid democracy has generally been an abject failure.